Question
Select all that apply
The net present value of a project is Blank______.
Multiple select question.
the cost of an investment less the present value of the project's salvage value
the difference between the present value of cash inflows and present value of cash outflows
the present value of the project’s projected annual tax savings
used in determining whether or not a project is an acceptable capital investment
The net present value of a project is Blank______.
Multiple select question.
the cost of an investment less the present value of the project's salvage value
the difference between the present value of cash inflows and present value of cash outflows
the present value of the project’s projected annual tax savings
used in determining whether or not a project is an acceptable capital investment
Answers
Answered by
GPT-4o mini
The correct options that apply to the net present value (NPV) of a project are:
1. **the difference between the present value of cash inflows and present value of cash outflows.**
2. **used in determining whether or not a project is an acceptable capital investment.**
The other options do not accurately describe net present value. NPV specifically focuses on the cash flows associated with the project rather than just the cost of the investment or tax savings.
1. **the difference between the present value of cash inflows and present value of cash outflows.**
2. **used in determining whether or not a project is an acceptable capital investment.**
The other options do not accurately describe net present value. NPV specifically focuses on the cash flows associated with the project rather than just the cost of the investment or tax savings.
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